Credit Suisse estimates that by the beginning of the next decade, 63 million new energy vehicles will be sold globally; of these, 29 million will be fully electric. Meanwhile, industry watchers have warned that rising electricity demand will put further pressure on power infrastructure.
In order to further improve the dynamic performance of electric vehicles (EVs), the global mainstream automakers have set their sights on a new generation of SiC (silicon carbide) power components, and have successively launched a number of high-performance models equipped with corresponding products. As more and more automakers begin to introduce SiC technology into electric drive systems, the media predicts that by the end of 2022, the market size of automotive SiC power components will reach 1.07 billion US dollars.
The automotive SiC power component market is currently dominated by European and American IDMs. Major suppliers such as STMicroelectronics, Onsemi, Wolfspeed, Infineon, and ROHM have been deeply involved in this field for a long time, and have close interactions with major automakers and first-tier manufacturers. The boom in the auto market has also made mainstream manufacturers realize how important it is to have a stable supply capability.
In order to better control the supply of raw materials, since the shortage occurred, automotive IC manufacturers have successively entered the field of upstream substrate materials in an attempt to fully control the supply chain. For example, Onsemi acquired GT Advanced Technologies last year.
On the other hand, major auto companies have high hopes for SiC, and simultaneously vigorously participate in supply chain construction. From the perspective of China, the world's largest electric vehicle market, auto companies such as SAIC and GAC have begun to deploy the entire silicon carbide industry chain, creating valuable development opportunities for domestic suppliers. At the same time, BYD, Hyundai and other car companies have launched their own chip research and development plans, injecting new vitality into the market.
In addition, the cost-effectiveness of using SiC power components has been a market concern, and the key lies in the upstream substrate material. The industry is trying various methods to further reduce costs, including new crystal growth methods (UJ-Crystal, Lattice Lingyu), high-efficiency wafer processing technologies (Soitec, Disco, Infineon, Lasic Semiconductor Technology), and following Wolfspeed in 8 inch wafer technology direction.
With the continuous breakthrough of SiC material technology and the maturity of chip structure and module packaging technology, the penetration rate of SiC power devices in the automotive market is expected to maintain an upward trend, and gradually from the current high-end automotive applications to mid- and low-end automotive applications to accelerate automotive electrification process.
According to expert analysis, GaN and SiC solutions are ideal for AC/DC on-board chargers and high-voltage-to-low-voltage (HV-to-LV) DC/DC converters for electric and hybrid vehicles. By 2025, one in every 10 vehicles sold worldwide is expected to be a 48-V mild hybrid. Using a 48V system in a mild hybrid improves fuel efficiency, provides 4 times more power without increasing engine size, and helps reduce emissions without increasing system cost.
According to Exawatt, by 2024, sales of passenger electric vehicles equipped with SiC-based MOSFETs will exceed sales of electric vehicles equipped with Si IGBTs. As the SiC market share for inverters grows, EV manufacturers are removing the last hurdles to widespread commercialization, such as the higher cost of SiC compared to traditional Si solutions.
Finally, from the supply side, ensuring sufficient SiC wafer supply is still an urgent concern for the industry. Leading substrate manufacturers have invested heavily in crystal growth to meet growing SiC demand, while nearly all leading equipment manufacturers, according to media reports, have purchased in-house wafer technology or improved existing wafer capacity.
The automotive SiC power component market is expected to reach $1.07 billion in 2022 and climb to $3.94 billion by 2026 as more and more automakers begin to introduce SiC technology into electric drive systems.
